MUEL - Paul Mueller Company Announces Its Fourth Quarter Earnings of 2019

April, 07 2020 04:07 PM Mueller Paul Co

SPRINGFIELD, Mo., April 07, 2020 (GLOBE NEWSWIRE) -- Paul Mueller Company (OTC: MUEL) today announced earnings for the quarter ended December 31, 2019.

PAUL MUELLER COMPANY
TWELVE-MONTH REPORT
(In thousands)
CONSOLIDATED STATEMENTS OF INCOME









Three Months Ended

Twelve Months Ended

December 31

December 31

2019

2018

2019

2018








Net Sales
$
55,266


$
45,618


$
197,177


$
201,210

Cost of Sales

38,552



33,942



142,435



150,260

Gross Profit
$
16,714


$
11,676


$
54,742


$
50,950

Selling, General and Administrative Expense

11,971



11,965



45,672



47,137

Operating Income (Loss)
$
4,743


$
(289
)

$
9,070


$
3,813

Interest Expense

(19
)


(187
)


(827
)


(920
)
Other Income (Expense)

(15
)


(1
)


351



218

Income (Loss) before Provision (Benefit) for Income Taxes
$
4,709


$
(477
)

$
8,594


$
3,111

Provision (Benefit) for Income Taxes

1,144



(337
)


2,005



472

Net Income (Loss)
$
3,565


$
(140
)

$
6,589


$
2,639









Earnings (Loss) per Common Share ––











Basic
$
2.98


$
(0.12)


$
5.51


$
2.21

Diluted
$
2.98


$
(0.12)


$
5.51


$
2.21

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME





Twelve Months Ended

December 31


2019



2018





Net Income
$
6,589


$
2,639

Other Comprehensive Income (Loss), Net of Tax:



Foreign Currency Translation Adjustment

(589
)


(1,659
)
Change in Pension Liability

(1,204
)


(1,330
)




Comprehensive Income (Loss)
$
4,796


$
(350
)




CONSOLIDATED BALANCE SHEETS





December 31

December 31


2019



2018





Cash and Short-Term Investments
$
1,072


$
715

Accounts Receivable

28,509



27,533

Inventories

20,552



26,678

Current Net investments in Sales-Type leases

47



-

Other Current Assets

3,763



2,066

Current Assets
$
53,943


$
56,992





Net Property, Plant, and Equipment

47,406



50,699

Right of Use Assets

1,421



-

Other Assets

21,355



22,497

Long-Term Net Investments in Sales-Type Leases

769



-

Total Assets
$
124,894


$
130,188





Accounts Payable
$
10,534


$
11,177

Current Maturities and Short-Term debt

6,208



10,332

Current Lease Liabilities

485



-

Other Current Liabilities

27,021



26,131

Current Liabilities
$
44,248


$
47,640





Long-Term Debt

15,334



21,478

Long-Term Pension Liabilities

30,395



32,081

Other Long-Term Liabilities

1,566



1,361

Lease Liabilities

936



-

Total Liabilities

92,479



102,560

Shareholders' Investment

32,415



27,628

Total Liabilities and Shareholders' Investment
$
124,894


$
130,188

SELECTED FINANCIAL DATA





December 31

December 31

2019

2018
Book Value per Common Share
$
27.11

$
23.10
Total Shares Outstanding

1,195,866


1,196,187
Backlog
$
79,791

$
97,354

CONSOLIDATED STATEMENT OF SHAREHOLDERS' INVESTMENT






































Common Stock
Paid-in Surplus

Retained Earnings

Treasury Stock

Accumulated Other Comprehensive Income (Loss)

Total
Balance, December 31, 2018

$
1,508

$
9,708

$
61,895

$
(6,332
)

$
(39,151
)

$
27,628

Add (Deduct):













Net Income





6,589





6,589

Other Comprehensive Income, Net of Tax










(1,793
)


(1,793
)
Treasury Stock Acquisition








(9
)






(9
)
Balance, December 31, 2019

$
1,508

$
9,708

$
68,484

$
(6,341
)

$
(40,944
)

$
32,415

CONSOLIDATED STATEMENT OF CASH FLOWS

Twelve Months Ended December 31, 2019

Twelve Months Ended December 31, 2018
Operating Activities:







Net Income
$
6,589


$
2,639





Adjustment to Reconcile Net Income to Net Cash Provided (Required) by Operating Activities:



Pension Contributions (Greater) Less than Expense

(2,890
)


(4,015
)
Bad Debt Expense

398



161

Depreciation & Amortization

6,248



5,794

Deferred Tax Expense

979



1,182

(Gain) Loss on Sales of Equipment

(36
)


(164
)
Interest on Lease Liability for Financing

(17
)


-

Change in Assets and Liabilities



(Inc) Dec in Accts and Notes Receivable

(1,100
)


(4,856
)
(Inc) Dec in Cost in Excess of Estimated Earnings and Billings

(985
)


(182
)
Dec (Inc) in Inventories

6,126



4,402

(Inc) Dec in Prepayments

(644
)


2,000

(Inc) Dec in Net Investment in Sales-type leases

(816
)


-

Dec (Inc) in Other Assets

52



(57
)
(Inc) Dec in Deferred Taxes

(382
)


(422
)
(Dec) Inc in Accounts Payable

(642
)


(3,065
)
(Dec) Inc in Other Accrued Expenses

(1,006
)


(1,805
)
(Dec) Inc in Advanced Billings

(6,327
)


(2,500
)
Inc (Dec) in Billings in Excess of Costs and Estimated Earnings

8,223



(1,529
)
Inc (Dec) in Lease Liability for Operating

1,189



-

Inc (Dec) in Lease Liability for Financing

770



-

Inc (Dec) In Long Term Liabilities

206



(1,997
)
Net Cash Provided (Required) by Operating Activities
$
15,935


$
(4,414
)




Investing Activities



Intangibles

(118
)


-

Proceeds from Sales of Equipment

49



173

Additions to Property, Plant, and Equipment

(4,340
)


(4,838
)
Net Cash (Required) for Investing Activities
$
(4,409
)

$
(4,665
)




Financing Activities



(Repayment) of principal portion of lease liability for operating

(374
)


-

(Repayment) of principal portion of lease liability for financing

(147
)


-

(Repayment) Proceeds of Short-Term Borrowings, Net

(4,088
)


6,313

(Repayment) Proceeds of Long-Term Debt

(5,893
)


(922
)
Treasury Stock Acquisitions

(9
)


(3
)
Net Cash (Required) Provided for Financing Activities
$
(10,511
)

$
5,388





Effect of Exchange Rate Changes

(658
)


(2,165
)




Net Increase (Decrease) in Cash and Cash Equivalents
$
357


$
(5,856
)




Cash and Cash Equivalents at Beginning of Year

715



6,571





Cash and Cash Equivalents at End of Year
$
1,072


$
715

PAUL MUELLER COMPANY
SUMMARIZED NOTES TO THE FINANCIAL STATEMENTS
(In thousands)

A. The chart below depicts the net revenue on a consolidating basis for the three months ended December 31.

Three Months Ended December 31
Revenue

2019


2018

Domestic
$
40,310

$
31,188

Mueller BV
$
15,043

$
14,730

Eliminations
$
(87
)
$
(300
)
Net Revenue
$
55,266

$
45,618

The chart below depicts the net revenue on a consolidating basis for the twelve months ended December 31.

Twelve Months Ended December 31
Revenue

2019


2018

Domestic
$
144,500

$
137,090

Mueller BV
$
54,436

$
65,341

Eliminations
$
(1,759
)
$
(1,221
)
Net Revenue
$
197,177

$
201,210

The chart below depicts the net income on a consolidating basis for the three months ended December 31.

Three Months Ended December 31
Net Income

2019

2018

Domestic
$
3,319
$
995

Mueller BV
$
192
$
(1,150
)
Eliminations
$
54
$
15

Net Income
$
3,565
$
(140
)

The chart below depicts the net income on a consolidating basis for the twelve months ended December 31.

Twelve Months Ended December 31
Net Income

2019


2018

Domestic
$
7,412

$
4,686

Mueller BV
$
(805
)
$
(2,083
)
Eliminations
$
(18
)
$
36

Net Income
$
6,589

$
2,639

B. Please refer to the President’s letter in the 2019 Annual Report for relevant management discussion and analysis.

C. The pre-tax results for the three months ended December 31, 2019, were favorably affected by a $0.5 million decrease in the LIFO reserve. The pre-tax results for the twelve months ended December 31, 2019, were favorably affected by a $44,000 decrease in the LIFO reserve. The pre-tax results for the three months ended December 31, 2018, were favorably affected by a $0.1 million decrease in the LIFO reserve. The pre-tax results for the twelve months ended December 31, 2018, were unfavorably affected by a $2.1 million increase in the LIFO reserve.

D. The consolidated financials are affected by the euro to dollar exchange rate when consolidating Mueller B.V., the Dutch subsidiary. The month end euro to dollar exchange rate was 1.14 for December, 2018 and 1.12 for December, 2019, respectively.

This press release contains forward-looking statements that provide current expectations of future events based on certain assumptions. All statements regarding future performance growth, conditions, or developments are forward-looking statements. Actual future results may differ materially from those described in the forward-looking statements due to a variety of factors, including, but not limited to, the factors described in the Company’s Annual Report under “Safe Harbor for Forward-Looking Statements”, which is available at paulmueller.com. The Company expressly disclaims any obligation or undertaking to update these forward-looking statements to reflect any future events or circumstances.

The accounting policies related to this report and additional management discussion and analysis are provided in the 2019 annual report, available at www.paulmueller.com.

Press Contact: Ken Jeffries | Paul Mueller Company | Springfield, MO 65802 | (417) 575-9346
kjeffries@paulmueller.com | http://paulmueller.com

Company Name:	Mueller Paul Co
Stock Symbol:	MUEL
Market:	OTC
Website:	www.paulmueller.com

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